Tuesday, September 13, 2011

Permanent Injunction Against "Deriving Future Revenue" For Maintenance Services for Infringing Products is "Entirely Proper"

In granting plaintiffs' motion for a permanent injunction, the court found that defendants would have to remove or disable software sold pre-verdict when defendants collected a maintenance fee. "[Plaintiff] contends that [defendants'] ongoing revenue stream from maintenance associated with the infringing products constitutes products. That is, [plaintiff] argues that until [defendant] removes the infringing capabilities from a given customer's software, such revenue is associated with future infringing activity that should be enjoined. The Court agrees and finds that enjoining [defendants] from deriving future revenue from unmodified, infringing products is entirely proper."

Versata Software, Inc., et. al. v. SAP America, Inc., et. al., 2-07-cv-00153 (TXED September 9, 2011, Order) (Everingham, M.J.)

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